HCL Technologies (HCLTECH) Q4 98/99 earnings summary

Executive summary

• FY ended 30 June 1999: software and technical services revenue Rs 2,757,316 thousand, up 122% YoY; profit after tax Rs 1,009,680 thousand, up 82% YoY.

• Results included Rs 118,928 thousand net profit on investment sales; revised asset useful lives increased depreciation and reduced FY profit by Rs 115,971 thousand.

Financial highlights

• Total income Rs 2,937,365 thousand; profit before tax Rs 1,030,306 thousand; profit after tax Rs 1,009,680 thousand.

• Total expenditure Rs 1,907,059 thousand, including software development costs of Rs 1,311,878 thousand and administration expenses of Rs 386,959 thousand.

• Software development costs included Rs 638,713 thousand paid to subsidiaries for development services.

• Proposed dividend Rs 16,597 thousand; corporate dividend tax Rs 1,660 thousand; reported dividend rate 5%.

Segment performance

• Americas generated approximately Rs 2,016 lakh, or 73% of service revenue, versus 71% in FY98; Europe, Australasia and Japan contributed approximately Rs 741 lakh.

• Revenue from Europe, Australasia and Japan grew approximately Rs 475 lakh YoY, while their share of revenue declined to 27% from 29%.